Regarding your inspiring vision for Indian companies to reach global scale
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Respected Prime Minister Modiji,
I am writing to express my sincere appreciation for the lofty and inspiring targets
you set for Indian companies in your Independence Day address yesterday. Your
call to action for our businesses to achieve world-class scale is a powerful vision
that resonates deeply with our national aspirations for a Viksit Bharat.
To translate this ambition into reality, I believe we must align our economic
structures to incentivize such growth. As I have previously proposed, a highly
effective "out-of-the-box" approach would be the implementation of an
"Inversion of Job Reduction" tax regime.
Under this proposal, the corporate tax rate would be inversely linked to a
company's total employment headcount: the more persons a company employs,
the lower its corporate tax burden becomes.
- Up to 100 persons: 30%
- 101–500 persons: 25%
- 501–1,000 persons: 20%
- 1,001–5,000 persons: 15%
- 5,001–10,000 persons: 10%
- Above 10,000 persons: 5%
Furthermore, additional tax incentives could be granted based on the average age
of the workforce, encouraging companies to hire and train India’s young
demographic.
This model is simple to administer through the Income Tax Department and
focuses on total sustainable employment rather than just incremental hiring. I am
confident that by incentivizing our private sector to prioritize large-scale
employment as a key driver of their business success, we can rapidly accelerate
the journey of Indian companies to the global stage.
Thank you for your continued leadership and your unwavering commitment to
building a prosperous and self-reliant India.
With profound respect,
Hemen Parekh
Sources
| # | Title | Date | About |
|---|---|---|---|
| 1 | INVENTIVIZING EMPLOYMENT | 2016-08-01 | Original detailed proposal for an inverted corporate tax regime based on company headcount. |
| 2 | Eleven Years to Implement ELI | 2025-07-01 | A later reference to the earlier proposal in the context of government employment schemes |
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